This is a trend following analysis using a breakout entry formation that generally has the greatest results. This analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs. Basically, this analysis is based on breakout and certain forms of reversals. The analysis seeks to highlight potential breakout setups that can result in higher reward. To ensure consistent successful trades, the trader should exercise some degree of patience and wait for the perfect set up to execute trades. There’re are several types of breakouts, I only focus on two types of breakouts, trend line breakout and double top/triple top/ bottom breakout. Even with the two, I only trade double top/ triple bottom breakout most of the times and trend line breakout at some other times. Double top/Triple top/ bottom breakout is more dependable and reliable than the other. Note, trend line breakout includes also breaks that occur out of various shapes such as wedges, channels, triangles, and all the other shapes part from rectangles. Below are the simple sketches of some of the breakout setups I’ll be focusing on.
Technical observation Yesterday EUR penetrated above a resistance level 1.0897 with a big green candle and it could rise even further, now, a retracement to the just broken line followed by a bounce at it can be expect. In case of a correction to the line 1.0897 with a bounce at it, bullish moveme
Technical observation Price rose to the resistance line 1.2059 but was not contained below it and a breakout was seen when it went above the line with a big green candle. A pull back to the just broken zone followed by a bounce at it can be expected for bullish movements of GBP. You can wait for a
Technical observation USD went down with a big bred candle after a rejection at the resistance line 112.09. Today, further bearish movements can be expected towards the supportive zone 108.17-107.99. If you went short with this pair at the line 112.09, remain short and pick your profits at the lin